Asensio and Turbodyne resolve their dispute.

On August 4, 1998 Asensio & Company, Inc. announced that it had initiated research coverage of shares of Turbodyne Technologies, Inc.’s (NASDAQ Symbol: TRBD) (Price: $5.3437) common stock. Following the initiation of coverage, trading was halted by NASDAQ and EASDAQ. Turbodyne was directed to release complete and accurate information on certain contracts and agreements and to take steps to ensure that future press releases are timely, complete and accurate.

Between June and October of 1999, Turbodyne made a series of management changes, including the resignation of certain members of its Board of Directors and the appointment of new members. Turbodyne has announced that its new management included certain individuals who have significant educational and work experience in the automotive industry.

Asensio & Company, Inc. has not conducted any significant research or due diligence on Turbodyne’s product development efforts or the market potential of its products in over a year. However, while Turbodyne did not invent the electrically assisted turbocharger, it has developed and patented what it contends are key technologies for the electrically assisted turbocharger.

Turbodyne and Asensio have fully and completely resolved all claims and issues between them.

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